A hybrid fund is one that includes more than one asset class. Often, it is a combination of equity and debt. At times, it may also include gold. Since there are different types of hybrid funds, you need to choose one as per your risk tolerance and goals.

For instance, an equity-oriented hybrid fund lets you invest in equity-related financial instruments that are highly volatile. On the other hand, if your goal is to earn fixed income on a regular basis, then you can pick a debt-oriented hybrid fund.

After investing in a hybrid fund, do we need to focus on diversification? Moreover, is it possible to do a Systematic Withdrawal Plan or SWP in a hybrid fund? Find out more about hybrid mutual funds in this podcast.